Memorandum

City of Lawrence

Information Technology

TO:	Dave Corliss, City Manager
FROM:	James Wisdom, Director of Information Technology
DATE:	May 7, 2014
RE:	Dawn Fiber Project

Background

On December 17, 2013 the City Commission approved a license agreement with Dawn Fiber, LLC, dba Free State Broadband for the installation of fiber in various city rights-of-way.  Dawn Fiber plans included installing fiber conduit from 5^th & Tennessee Streets in Lawrence to Baldwin City, Kansas, (see map).   The agreement included plans to install three conduits, two for Dawn Fiber and one 1-1/4” conduit for the City of Lawrence.  During the December meeting some of the commissioners asked what it would cost to increase the conduit size to 2-inch conduit. 

Costs Comparison

The CommScope manufacturer verified that the 1-1/4” conduit will allow for installation of either 288 or 432 count fibers.  The attached spreadsheet compares the costs as follows:

Option #1: 1-1/4” conduit with 288 strands:	$77,712.06
Option #2: 1-1/4” conduit with 432 strands:	$150,417.00
Option #3: 2” conduit with 432 strands:	$160,477.00

The costs do not include splicing and splice cases as the number of splices is yet to be determined and will depend on what buildings may be approved on the initial installation of the fiber.  The approximate distance of the conduit path is about 19,000 feet.  The conduit price includes 20,000 feet of conduit which allows approximately 5% for waste.  The fiber price include 20,900 feet of fiber to allow for the excess fiber that is stored in loops in the hand holes, which allows for slack in times of repair.  Dawn Fiber would be installing the fiber conduit and hand-holes per the agreement at no-charge, but the approximate values of that installation are shown and credited on the comparison. 

Right-of-Way License Agreement

On January 13, 2014, Kennis Mann, of Dawn Fiber, LLC, d/b/a Free State Broadband signed the license agreement at City Hall.  The agreement was notarized by Diane Trybom of the City Clerk’s office, and a copy of the agreement was given to Mr. Mann.

The current agreement includes installing the 1-1/4” conduit option, but a 2” conduit could be installed, but would require an amendment or addendum to the agreement.

Verizon Agreement vs. Dawn Fiber Agreement

A question was brought up about the differences between the Verizon and Dawn Fiber Agreements.  The differences between the two agreements are basically:

Conduit and Hand Holes:

• Verizon paid for the conduit and hand-holes, while Dawn Fiber asked the City to cover the materials cost:
• Estimated at $11,877.06 for the 1-1/4” Option
• Estimated at $19,339.00 for the 2” Option
• Dawn Fiber offered to sell us the conduit and hand-holes at their cost.

Project Labor:

• Both agreements required the companies to include the labor to install the conduit and hand holes.

Fiber:

• Both agreements did not include the fiber for the project
• Both agreements did not include the installation of the fiber for the project.
• The agreement does not require the fiber to be installed during the project; the City could choose to do that at a later date.

Fiber Costs:

• For the Dawn fiber project the City could provide the fiber through our own sources via State of Kansas Contract pricing:
• 288 Count Fiber, $2.35 per foot  
• 432 Count Fiber, $5.56 per foot

Note:  Prices most recently quoted, always subject to change.

Verizon project fiber costs were funded by Kansas University as part of their agreement.

Hand Holes:

• Both agreements covered separate hand-holes for the City and Verizon/Dawn.

Other Benefits:

• Dawn Fiber agreement allowed for them to install a fiber bundle no larger than .67” in the City’s existing 3” conduit on O’Connell Road that goes under the Wakarusa River.  The City of Lawrence did not give access to Verizon to any of the City’s conduit.
• In exchange, Dawn Fiber is giving the City of Lawrence access to two pair of fibers from the City of Lawrence to Baldwin City, KS which is intended for the City’s Fire & Medical Facility on Kibbee Street.  The Fire Department would consider this a great benefit for their training via their video conferencing system.  Verizon did not give the City of Lawrence any access to their fibers.

Project Route:

• Verizon Fiber chose their route through Lawrence
• Dawn Fiber allowed the City to designate a route within reason that best benefited the City of Lawrence.

City Facilities and Infrastructure Affected by Verizon and Dawn Projects:

Verizon Fiber

• Connection capabilities to the City’s existing fiber network on Iowa St.
• Connection capabilities to fourteen (14) existing Traffic Signals.
• Connection capabilities to the following buildings and site:
• Clinton Water Treatment Plant
• Fire Station #4
• Fire Station #1
• Police’s Investigation and Training Center (ITC)
• BTBC Annex Building
• Rock Chalk Park
• City Public Library
• Outdoor Pool
• New Hampshire St. Parking Garage
• Several buildings for Kansas University who partnered on the project

Dawn Fiber

• Connection capabilities to the Kansas Fiber Network
• Connection capabilities to the planned Dawn Fiber Network
• Connection capabilities to five (5) existing Traffic Signals
• Connection capabilities to the following buildings and sites:
• Carnegie Building
• Law Enforcement Center
• Central Maintenance Garage
• Street Division
• Street’s Red Barn Building
• Sanitation Division
• Fuel Stations at 11^th & Haskell
• P&R Maintenance Forestry Building
• East Lawrence Recreation Center
• Oak Hill Cemetery
• Memorial Park Cemetery
• Fire Training Center
• P&R Maintenance Shop
• Douglas County Fairgrounds
• Fire Station #2
• Harper Water Tower
• Venture Park
• Fire & Medical Station in Baldwin City

City’s Exclusive Use Clause

The agreement states in section 7(a) on Page 8 that (agreement), “The handholes shall be for the City’s exclusive use.”  I thought the agreement had said “conduit,” not “handholes.” 

Dawn Fiber’s concern during the time the agreement was being worked on related to the fact that they were spending significant costs to run the fiber to Baldwin City, KS and they were concerned about the City allowing other Internet Service Providers (ISP) access to the City’s portion of the conduit.  In discussions with Mike Bosch he was agreeable to an agreement addendum to allow the City to work with the County and other public institutions, but was primarily concerned about ISP competitors being in the same fiber bundle.

Randy Larkin, from the City Attorney’s Office, felt the current agreement would allow the City to use the conduit as they chose, but only City staff would be able to access the conduit via the hand holes.

Dawn Fiber’s Options

Mike Bosch of Dawn Fiber approached the City on how he might connect with Kansas Fiber Network’s connection in Lawrence and have a fiber route to Baldwin City, KS.  Mike’s goal was to find two fiber routes to Baldwin City to allow for redundancy of his planned network.  Since December Mr. Bosch has identified three fiber routes available for their project, and only one involves going through Lawrence. 

Dawn Fiber’s proposed conduit provides many potential benefits for the City of Lawrence.  This project will save the City approximately $300,000 in initial labor costs. In addition to the buildings and traffic signals served, the fiber will allow for us to create fiber rings for some of the existing fiber on 23^rd Street. 

Mike Bosch was out of town during the May 6, 2014 agenda meeting, but has expressed he will be able to attend the May 13, 2014 meeting.

Action

Direct staff on the preferred fiber conduit installation size and fiber count.